New, More Expensive Apartments. “Spring Surprises Regarding Price Development”

“The real estate market has been showing signs of recovery since the fall of last year. However, this spring surprises in terms of price developments, with sustained monthly increases in most cities. Current prices are supported by a large increase in demand. We are therefore in a favorable market context for acquisition, with a forecast of increased interest and prices in the coming period”, says Daniel Crainic, Imobiliare.ro marketing director.

An analysis of the evolution of prices in the country’s major cities shows that new apartments have become more expensive in Bucharest.

The Imobiliare.ro Index indicates a 17% advance at the level of the average price requested for homes located in buildings completed in the last 5 years. Thus, apartments that were sold for under 1,590 euros/useful square meter in April 2023 can now be bought for an average price of 1,850 euros/useful square meter.

A 5% increase in the average asking price for new apartments in the Capital was also observed in the last month. This indicates a significant flow of new properties entering the market at higher prices.

In Bucharest there are, at the moment, about 50 residential projects of various sizes that have a deadline for completion during this year, according to information collected by Imobiliare.ro.

Most of the new apartments would be put into use in the northern part of the city, but also in the south and west of the capital.

In other words, the market is at extremes: the north of the city is known for properties developed to high standards for which some of the highest prices are demanded not only in Bucharest, but also in the country, while in the other two areas buyers can find some of the most affordable options.

West Bucharest, under the magnifying glass of future buyers

Interest in new properties in the Capital, both apartments and houses, increased in the first quarter of this year by 22% compared to the same period in 2023, at a faster pace than that related to old homes. At the same time, the well-known problems in the relationship between the authorities and the developers generated a 15% decrease in the offer in the new segment, up to 13,700 properties.

If we are talking strictly about the potential buyers who turned their attention to the apartments in buildings completed starting in 2020, we can say that most of them have put under the magnifying glass the offer available in the Militari-Gorjului-Lujerului-Uverturii area.

The strong expansion in the new residential segment in the south of the city also aroused their interest, the second place in the ranking being occupied by the Berceni neighborhood. This was closely followed by another neighborhood in the west of the city, Drumul Taberei.

The Ozana-Theodor Pallady area in the east of the Capital, intensively developed in recent years both residentially and commercially, has in turn attracted a considerable number of potential buyers.

Cluj-Napoca remains the most expensive city. But is there still room for growth?

Cluj-Napoca is the most expensive city in the country for buyers interested in a new apartment. The average asking price for these properties reached the value of 2,874 euros/usable square meter by the end of last month. Basically, a person who wants to buy a new home pays 164 euros more per square meter than if he were to opt for a property available on the old market.

What should be noted, however, is the reduced advance registered in the last 12 months at the price level, of about 6%. Only in Constanța did prices increase at a slower rate.

Interest from potential buyers also gravitated in this city to new properties at the start of the year. However, old homes are lagging behind, the increase in demand being greater in their case, according to Imobiliare.ro data.

However, we cannot overlook the way in which the peri-urban area develops, but also the migration of a segment of the population to the housing available on the outskirts of the city in search of more attractive prices.

Prices are also rising in Brașov

Buyers interested in purchasing a new apartment in Brașov pay now prices 12% higher than in the same period last year. On average, you can buy an apartment in a building completed in the last 5 years for 2,211 euros/useful square meter.

Even though new homes cost more, owners have made more significant increases in old homes. The increases exceed, this time, 18%. With such prices, Brașov maintains its third position in the ranking of the most expensive cities in the country for those who want to become owners.

At the beginning of this year potential buyers turned their attention to new properties available in the local market. However, a 15% decrease in demand was visible, a fact that could indicate a decrease in the purchase interest from small investors.

The supply of new properties, although modest at just 1,200 homes, has increased, which is rare among major cities.

Timișoara surpasses Bucharest in the new segment

New apartments in Timișoara ended up being put up for sale at prices that exceed those in the capital, according to the Imobiliare.ro Index, after price increases of almost 15% in 12 months. On the local residential market, it was possible to observe, thus, the second most significant advance in prices among the big cities in the country, exceeded only by the one recorded in Bucharest.

Currently, an apartment completed in the city on Bega in the last 5 years can be bought for 1,885 euros/useful square meter.

New homes were also the most attractive to potential buyers in the first quarter of 2024, despite the level of local interest being tighter than at the start of last year. The supply of new apartments and houses included almost 2,000 units in the same time frame, being 19% richer than in the first quarter of 2023.

Apartments have become the least expensive in Constanța

The average asking price for new apartments put up for sale in the seaside city recorded the smallest variation in the last 12 months and reached 1,733 euros/useful square meter.

The interest of potential buyers for new properties in Constanța followed a strong growth trend in the first part of this year, if we refer to the situation recorded in the similar period of 2023. The ratio between the number of potential buyers existing at the market level and the supply of new properties of locally it was higher here than in the other five major regional centers in Romania.

Significant savings in the cheapest big city in the country

New apartments in Iasi are now considerably more expensive than last year. The average price paid by buyers has reached 1,629 euros/useful square meter, after a 12% increase in the last 12 months.

Even though new homes are still selling at higher prices than those in the old market, the rate at which prices have risen in the latter is faster. We discuss about an advance of about 13% up to the value of 1,578 euros/useful square meter.

The beginning of the year brought a 15% increase in demand on the local market, Iași surpassing all major cities in the country in this regard. And this time, the attention of potential buyers was primarily focused on new apartments and houses.

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